Exam 16: The Conduct of Monetary Policy: Strategy and Tactics

The guiding principle for the conduct of monetary policy that held that as long as loans were being made for "productive" purposes,then providing reserves to the banking system to make these loans would not be inflationary became known as the

The fluctuations in both money supply growth and the federal funds rate during 1979-1982 suggest that the Fed

The rate of inflation increases when

Which of the following criteria need not be satisfied for choosing a policy instrument?

The Federal Reserve System was created to

The Fed operating procedures employed between 1979 and 1982 resulted in ________ swings in the federal funds rate and ________ swings in the M1 growth rate.

The "Greenspan doctrine" - central banks should not try to prick bubbles - was based on which of the following arguments?

The type of monetary policy that is used in Canada,New Zealand,and the United Kingdom is

When compared to the Fed's ________ anchor approach,________ targeting can make the institutional framework for the conduct of monetary policy more consistent with democratic principles.

The Fed-Treasury Accord of March 1951 provided the Fed greater freedom to

Which of the following is not a disadvantage of of the Fed's "just do it" approach to monetary policy?

Foreign exchange rate stability is important because a decline in the value of the domestic currency will ________ the inflation rate,and an increase in the value of the domestic currency makes domestic industries ________ competitive with competing foreign industries.

The mandate for the monetary policy goals that has been given to the European Central Bank is an example of a ________ mandate.

Inflation results in

The Fed can engage in preemptive strikes against a rise in inflation by ________ the federal funds interest rate; it can act preemptively against negative demand shocks by ________ the federal funds interest rate.

If the central bank targets a monetary aggregate,it is likely to lose control over the interest rate because

Lessons that economists and policy makers have learned from the recent global financial crisis include

The monetary policy strategy that suffers a lack of transparency is

According to the Taylor Principle,when the inflation rate rises,the nominal interest rate should be ________ by ________ than the inflation rate increase.

In both New Zealand and Canada,what has happened to the unemployment rate since the countries adopted inflation targeting?